Thoughts on some of the absurdity of multi-currency analysis. - page 23
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Such a rigid connection in the above formulas can only be at the "start" - i.e. the Euro index started changing, i.e. a real drop/strengthening of the Euro occurred, in the first few tens of points this formula may work, but when there is a "saturation point" = a real reasonable rate - the price will start moving more slowly, or the pullback or price will "cycle" around certain levels
ЗЫ: it often happens that at the time of news release Ask and Bid move apart by insignificant value
we cannot, knowing two figures, calculate a third
I, on the other hand, look in terms of distance travelled (0.00978, 0.00879, 0.00367) and argue that there is no rigid link as different distance travelled (we cannot, knowing two figures, calculate a third). As for his formulas, yes they are correct, but it is in the moment, in a given second it seems to be a rigid connection but it is a fallacy, the currencies (cars) move differently.
If you don't mind, please help us understand...
...
then this relationship should be visible at the height of the daily candle for these pairs - demonstrate please
There is one error in your reasoning. From your point of view this cannot be the case, as everything is rigidly connected
Data for 28.06.2010 (beginning to end of day)
symbol
opener
clause
delta
EURUSD
1.23781
1.22803
0.00978
EURGBP
0.8222
0.81341
0.00879
GBPUSD
1.50538
1.50171
0.00367
Before going into details I would like to clarify the figures...
Of course I understand that different brokerage companies have different quotes, by the way I have them slightly different (1-2 p. 4 digits), but what is highlighted in red, as much as a 78 p. difference
How may we continue the calculation? We should at least look into it.
Data for 28.06.2010 (beginning to end of day)
symbol
open
clause
delta
EURUSD
1.23781
1.22803
0.00978
EURGBP
0.8222
0.81341
0.00879
GBPUSD
1.50538
1.50171
0.00367
The error should be 1.50955.... Accordingly, the delta is 0.00417...
Such a rigid connection in the above formulas can only be at the "start" - i.e. the Euro index started changing, i.e. a real drop/strengthening of the Euro occurred, in the first few tens of points this formula may work, but when there is a "saturation point" = a real reasonable rate - the price will start moving more slowly, or the pullback or price will "cycle" around certain levels
SZZY: it often happens that at the time of news publication Ask and Bid move apart by a small value
I have recently solved a similar problem of index building.
The problem statement is as follows:
We need to develop an algorithm of computing some synthetic currency indexes V[i,j], where i is the index (ordinal number) of a currency; j is the bar number.
Which have property C[i,k] [j] = V[i,j] / V[k,j], where C[i,k] [j] is cross rate of currency i to currency k on bar j.
The problem has infinitely many solutions:
if V[i,j] is a solution, then for any array R[j] that does not contain zero values
the solution is also the product V'[i,j] = V[i,j] * R[j].
Amazingly, having synthetic index values in hand, it is possible to calculate cross rates with an accuracy of 3 points on four digits.
I used the following currency list, as all cross-rates are available:
string CurrencyList = "USD EUR GBP JPY AUD CHF CAD ";
The error should be 1.50955.... Accordingly, the delta is 0.00417...
Yeah, my mistake. I took a low instead of a low. Doesn't change the point.